Monday, 18 March 2024, Bengaluru, India
Sensor Tower, a leading app analytics firm is purchasing competitor Data.ai in a move that might consolidate the mobile intelligence market. The move could produce a powerhouse that could lead the industry and offer fiercely competitive insights into the app economy.
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By providing estimates on downloads, active users, in-app revenue, and traction within particular demographic and competitive benchmarks, Sensor Tower and Data.ai assist organizations and developers in understanding how mobile apps work.
According to Sensor Tower, no more customer-focused adjustments are planned for the platforms following the acquisition, whose essential services can fetch price tags of tens of thousands of dollars. For now, they will continue to be offered as stand-alone offers.
They have long appreciated Data.ai’s excellent product and staff. In a statement, CEO Oliver Yeh of Sensor Tower stated that the acquisition will enable the company to reach a wider audience and provide best-in-class services to any business involved in the digital economy, thereby assisting in closing the gap between businesses and consumers.
A handful of Data.ai team members are being let go by Sensor Tower as part of the agreement.
Sensor Tower will receive some data in addition to the platform infrastructure and customer integration.ai’s 400-person team and has, therefore, declared a decrease in staff,” the business said in a statement.
Although Bain Capital provides credit-based financing, Sensor Tower did not reveal the deal’s exact financial details. Riverwood Capital and Paramark Ventures invested unreported amounts in Sensor Tower independently of the investments above. Data.ai’s recurring revenue was $100 million a year.
Chunsoo Kim, managing partner at Paramark, said this acquisition will significantly alter how the marketing industry measures the digital economy.
Even though SimilarWeb and AppFigures are among the other competitors, the two companies were each other’s greatest rivals.
The past of the businesses
The acquisition is unexpected, at least in light of the ultimate bidder. Crunchbase reports that Data.ai has raised over three times as much money as Sensor Tower. While Sensor Tower, which has Riverwood Capital as a primary stakeholder, has raised just $46 million, Data.ai has raised nearly $157 million over many stages.
The key is a three-year-old regulatory penalty.
Data.ai informed app developers that their data was not directly shared with outside parties. However, the SEC discovered that the company had shared intelligence data with outside parties without appropriately anonymizing the data between 2014 and mid-2018.
Several controversies have raised questions about Sensor Tower’s data collection practices. BuzzFeed News revealed in March 2020 that several VPN and ad-blocking apps harvested data covertly without revealing their connection to Sensor Tower. Sensing that it had chosen this course of action to remain competitive, Sensor Tower apologized in 2020.
Since Google and Apple recently updated their mobile operating systems, businesses like Sensor Tower and Data.ai have contributed significantly to data acquisition.
The app analytics industry is progressing at a critical juncture with Sensor Tower’s acquisition of Data.ai. Sensor Tower continues to play a leading role in providing data-driven insights and analytics solutions to app developers and businesses globally, which this strategic decision upholds. By adding Data.ai’s technology and knowledge to its own, Sensor Tower expands its capabilities and gives its customers even more comprehensive and valuable intelligence. With this acquisition, Sensor Tower again demonstrates its dedication to innovation and expansion, enabling companies to make wise decisions and prosper in the competitive app market. Further breakthroughs and noteworthy contributions to the app ecosystem are anticipated as the united business develops.
(Information Source: Techcrunch.com)
